The earnings call reflected a strong start to the fiscal year with solid growth in key areas such as subscription revenue, AI product adoption, and industry engagement. Despite some macroeconomic challenges, the company has shown resilience and is confident in its strategic initiatives. The positive aspects significantly outweigh the challenges, indicating a positive overall sentiment.

Company Guidance -

Q2 2026

During Workday's first quarter fiscal 2026 earnings call, the company reported a 13% increase in subscription revenue, reaching $2.059 billion, and a total revenue growth of 13% to $2.24 billion. The non-GAAP operating margin stood at 30.2%, supported by moderated headcount growth and revenue outperformance. The company also noted a 15.6% increase in the 12-month subscription revenue backlog (CRPO) to $7.63 billion and a total subscription revenue backlog of $24.62 billion, up 19%. Workday's investment in AI showed promising results, with new ACV across AI products more than doubling year over year in Q1. Additionally, 25% of customer expansions included AI products. Workday reiterated its subscription revenue guidance for FY 2026 at $8.8 billion and expects Q2 subscription revenue to be approximately $2.16 billion, projecting a 13% growth. The company also announced a new $1 billion open-ended buyback authorization, further emphasizing its strategic focus on driving long-term growth and market expansion.

Strong Subscription Revenue Growth

Workday reported a 13% growth in subscription revenue, reaching $2.059 billion, which is in line with their guidance for the fiscal year.

Successful AI Product Adoption

New ACV across AI products more than doubled year-over-year, with around 25% of customer expansions including at least one AI product.

Robust Financials Performance

Non-GAAP operating margin was reported at 30%, exceeding expectations due to moderated headcount growth and revenue outperformance.

Significant New Customer Wins

Established new HCM relationships with major companies, including United Airlines, Pilot Travel Centers, and Mutual of Omaha Insurance Company.

Expansive Partner Ecosystem

Partners contributed more than 20% to net new ACV, and 25 new partner apps were added to the Workday marketplace.

Diverse Industry Growth

Five industries exceeded $1 billion in annual recurring revenue, including Manufacturing, Tech, Media, Financial Services, Retail and Hospitality, and Professional and Business Services.

Increased Federal Sector Engagement

Federal forum attendance was up 65%, highlighting successful engagement with senior government leaders.

Positive Cash Flow and Share Buyback Authorization

Operating cash flow was $457 million, and the board approved a new $1 billion open-ended buyback authorization.

Workday (WDAY) Earnings, Revenues Date & History

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WDAY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 21, 2025	2026 (Q2)	2.11 / -	1.75	―	―	―
May 22, 2025	2026 (Q1)	2.01 / 2.23	1.74	28.16% (+0.49)
Feb 25, 2025	2025 (Q4)	1.78 / 1.92	1.57	22.29% (+0.35)
Nov 26, 2024	2025 (Q3)	1.78 / 1.89	1.53	23.53% (+0.36)
Aug 22, 2024	2025 (Q2)	1.65 / 1.75	1.43	22.38% (+0.32)
May 23, 2024	2025 (Q1)	1.60 / 1.74	1.31	32.82% (+0.43)
Feb 26, 2024	2024 (Q4)	1.47 / 1.57	0.99	58.59% (+0.58)
Nov 28, 2023	2024 (Q3)	1.41 / 1.53	0.99	54.55% (+0.54)
Aug 24, 2023	2024 (Q2)	1.26 / 1.43	0.83	72.29% (+0.60)
May 25, 2023	2024 (Q1)	1.12 / 1.31	0.83	57.83% (+0.48)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

WDAY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 22, 2025	$272.07	$238.01	-12.52%
Feb 25, 2025	$255.22	$271.09	+6.22%
Nov 26, 2024	$270.19	$253.40	-6.21%
Aug 22, 2024	$231.08	$259.95	+12.49%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.